Pictured above: Derwent Living's chief executive Peter McCormack

Derby based housing provider Derwent Living has announced a £435,000 surplus - and a 20.5% rise in social housing lettings to £15.97 million in 2008.

Derwent Living says its operating costs were down at £23.67 million compared to £26.35 million in 2007. The organisation also increased its maintenance programme - spending almost £1 million extra in 2008.

The 3.9% overall fall in turnover in 2008 to £31.22 million was due to the economic climate, said Derwent Living's chief executive Peter McCormack, but the surplus showed that the organisation had worked hard during the downturn to ensure that it was "business as usual."

"Like other organisations, we didn't sell as many properties in 2008 - although we still managed to sell 118 on a part-buy, part-rent basis, which is an excellent result during this difficult period," said Mr McCormack. "Those properties we couldn't sell were converted to 'Try before you buy' where householders can rent for a period before being able to purchase."

Mr McCormack added that Derwent Living had remained positive during the credit crunch. It was recently ranked as the 37th highest developer in the country this year, confirming that it is continuing to provide much needed affordable housing during the credit crunch.

"Our diversity has meant we have been able to face difficult economic circumstances with confidence. In 2008 we built more than 1,500 new homes, over 800 of them affordable," added Mr McCormack.

"We let 636 homes, completed 5,000 repairs and insulated 300 homes and improved a further 400 with new kitchens and bathrooms. We had planned to carry out an extensive maintenance programme to improve our customer's homes, and we were committed to that plan.

Formed in 1964, Derwent Living is a not-for-profit organisation providing affordable living to suit a range of lifestyles, now managing more than 11,000 properties in the Midlands, South Yorkshire and the South East.

Derwent Living's property portfolio includes affordable housing, student living, property for key workers and young professionals, and the organisation's highly successful Easy Living properties for rent, sale and part-buy, part-rent.

Mr McCormack added: "Derwent Living has been providing affordable housing for many years and we have continually worked with our customers to find the right housing solutions for them. We have a continuing pledge to provide affordable housing solutions to people who are struggling to get on the property ladder during the current economic downturn.

"We believe we have stayed true to our roots in social housing, but in the face of increased competition, we have been ambitious, diversifying successfully into other areas of part-buy part-rent, student accommodation and key worker property.

"Through its more commercial ventures, Derwent Living can plough its surplus back into the communities it serves. We believe that this is vitally important to our customers and our communities."

Duncan Smith, chair of the Derwent Living board, said: "All in all it has been a good year for Derwent Living. We have seen a lot of positive things happening and it is encouraging to look to the future."